The stock should have been sold when reports of a delay at their operating mine in Khazakstan was reported. Now I believe this is one of the few uranium miners where value can be placed along with the share price.
First, if someone makes a bid for this stock it doubles over night due to the fact that shareholders are the stronger hands currently and not the speculators who I bet are net short.
Market players drove the price up of Uranium One's stock to keep the acquisitions of UrAsia and EnergyMetal and US Energy's uranium assets at a strong level since UraniumOne issued shares in all the purchases. Now insiders on these deals are selling their shares and driving the price down. The same can be said for the entire industry from my perspective so more mergers can be done at a good value and not nose bleed levels; since these stocks will start to pop like popcorn when consolidation begins to happen in earnest.
Classic long term buy on all dips such as what we are experiencing. Short term pain, Long term gain!
This is a company like Paladin that pooled investors resources and built a world class operation. Granted, it doesn’t have the high grade deposits like RioTinto or Cameco or Denison or Areva, but they have working mines, cash, and many more to come online. Additionally, this stock has never been given its due. Unlike other juniors with great potential, there is no need for them to explore since they have bankable mines and mills. Any exploration news will only be a bonus to them. A side note, unlike Paladin who had to buy uranium on the open market at 90 a pound and sell at 50 a pound, UraniumOne has in inventory 1mln pounds! But currently, expectations didnt meet results.
No comments:
Post a Comment